Defaulting companies that become insolvent? The administrator can be liable with his personal assets

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It is very common for, large, small, and medium-sized companies and even freelancers to see how, after having provided their services, many of the client companies for which they have worked become insolvent, without assets, or in the process of dissolution. However, it is possible to make the administrator of the company liable with his or her personal assets to settle the debt.

Who has not had in their client portfolio a company that has declared insolvency, claims to have no assets or is simply being dissolved because it is not viable? In recent years, this situation has affected thousands of entrepreneurs who, suffocated by late payments, are looking for a solution to collect what is owed to them.

In the meantime, the administrator of the defaulting company, who has been able to slightly disengage from his business, may be oblivious to the trail of heartaches, worries and sleepless nights that his mismanagement has caused. A mismanagement that, on numerous occasions, pushes other entrepreneurs towards inevitable bankruptcy.

The solution is to be found in the Capital Companies Act, which opens the door to the administrator of the debtor company being liable with his own assets.

However, in order to achieve this, a series of requirements must be met, among them that the defaulting company does not comply with its corporate duties, such as, for example, not contracting obligations when the company is in a state of dissolution, or not assuming the duty of diligence of a good businessman.

However, in order to prove that the defaulting company meets these requirements, it is essential to work with a team of lawyers who, if they are specialists in the field, will be able to carry out the accounting, balance sheet and accounts analysis that will make the court rule that it is the administrator of the defaulting company who must respond with his assets.

At Bufete Salmerón we specialise in offering this service. For more information call us on 954 536 038 or 695 694 847. We will assess your case without obligation.

Image by Stuart Miles (FreeDigitalPhotos)


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